Training and friction, Assuming diminishing marginal

Training and friction

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Training and Friction. Assuming diminishing marginal product of additional workers and diminishing marginal product of additional hours-per-worker, how would a profit-maximizing firm adjust its mix of workers and hours-per-worker in response to [ceteris paribus]: (a) A new user-friendly computer system reduces training time by one-half? (b) New legislation requiring workers be paid 50% extra per hour worked (i.e., time and one-half) on weekends and after 5 p.m. during the week? (c) A wave of new (skilled) political refugees to the town where the firm is located, thereby raising the marginal productivity of new workers?

Reference no: EM13838183

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